Leadership in the Digital Age: Skills Every Business Leader Needs
Across all industries, leaders face a share of common challenges in the digital era. While managing remote teams, leaders are striving to find creative ways to keep their colleagues engaged and connected to their projects. They are working to build a culture of innovation in their organizations, yet they also must manage the emotional well-being of their teams. As a result, managers and supervisors are looking at the leadership skills they currently have and trying to acquire the leadership skills that they need in the digital age.
The Changing Landscape of Leadership in the Digital Age
The concept of leadership has continued to evolve throughout history, but the rapid societal changes ushered in throughout the digital era have significantly reshaped the way that modern leaders connect with their teams. According to The Economic Times, leadership was previously defined by the "Great Man" theory, which claimed all leaders shared similar attributes that made them effective and respected leaders.
Today, the situational leadership style is more commonly accepted as the ideal. A situational leader is one who is flexible, adaptable, and willing to adjust their leadership style in order to meet the needs of those who look to them for guidance.
Essentially, leadership today is not a clearly defined concept; rather, it's thought of as a multifaceted, dynamic experience, with the approach to leadership varying greatly based on the needs of the organization, the culture of the workplace, and the current circumstances being faced.
Impact of Digital Transformation on Traditional Leadership
As the digital era began taking shape—and it was clear that technology would redefine business processes across all industries—it became obvious that traditional leadership would have to evolve in tandem with the times. Prior to the digital transformation, leaders often gave direct instruction to those who reported to them, and the priority was on delegating rather than collaborating.
Nowadays, thanks to the advent of advanced digital collaboration tools, leaders are required to partner with those around them and create a culture of innovation among their teams. Leadership is less of a top-down approach in the twenty-first century. Rather, the most effective leaders are able to bring together creative minds and specialized experts in a way that gives everyone a seat at the table.
The Role of Data-Driven Decision-Making
Data is the pillar of all modern business, making it imperative that all leaders recognize the importance of data-driven decision-making and the role it plays in today's global landscape. According to the Global Disaster Preparedness Center, data should be used by leaders as a compass — it provides them with factual information and is presented in a way that allows them to make strategic and insightful decisions. The innovation leadership style relies heavily on data-driven decision-making to fuel creativity and drive profits for an individual organization.
Essential Leadership Skills for the Digital Era
The digital era has been defined by constant change and evolution, requiring organizations to prioritize adaptive leadership and agile leadership. According to The Economic Times, these are the most critical leadership and technology skills in the digital era:
Technological Literacy
Digital literacy and technological proficiency are two of the most crucial leadership skills of the modern era. There was a time when leaders could once turn to the IT department and rely on the experts to implement the most recent technology into business operations. However, today's leaders are required to have an intimate understanding of the technology that is leveraged within the organization and the purpose behind that technology.
Digital Communication and Collaboration
From remote workforce management to streamlining operations within the physical workplace setting, modern leaders need to be able to effectively utilize digital communication and collaboration tools. Using the top digital communication tools, including videoconferencing software, cloud-based collaboration tools, and intranet technology, leaders can increase virtual team engagement and boost productivity.
Adaptability and Agility
In an ever-evolving landscape, leaders must be adaptable and agile in order to respond quickly to unexpected challenges and unprecedented events. Resilience in leadership can help drive innovation and foster growth within the organization.
Emotional Intelligence (EQ) in a Digital-First World
Emotional intelligence in leadership has never been more essential, particularly in a business climate where organizations are striving to balance the emotional well-being of their workforce with the rigorous demands of the modern era. Emotionally aware leaders are those who recognize the feelings of others and lead with empathy.
Cybersecurity Awareness
Advanced technology has opened up a world of possibilities for businesses, but it's also opened the doors to new, potentially devastating threats. In a digital business landscape, leaders must be inherently aware of the current cybersecurity risks and create proactive plans designed to prevent and mitigate those risks.
Leveraging Innovation and Creativity
To begin building a culture of innovation, leaders in the digital era must be willing to lead by example. By taking risks, sharing their own creative ideas, and being willing to listen to the feedback of others, modern leaders can foster creativity and innovation within their own teams.
Encouraging Innovation and Creativity
It sounds simple, but encouraging innovation and creativity is the first step to harnessing the untapped potential of your team. In some business environments, professionals feel too intimidated or restricted to share fresh or out-of-the-box ideas. Leaders who value innovation should actively work to encourage their employees to be creative.
Leading Remote and Hybrid Teams
Over the past several years, virtual team management has become the norm, as leaders have worked to adapt to changing social norms while harnessing the power of the most effective digital communication tools. According to Indeed, leaders can increase creativity and productivity while managing remote teams by evaluating performance metrics, setting actionable deadlines, and prioritizing collaboration.
Continuous Learning and Development
Upskilling in the digital era is made possible by continuous learning and development opportunities, many of which take place virtually. In addition to investing in these programs for themselves, leaders can encourage their team members to take advantage of these opportunities as well.
Risk-Taking in a Digital Economy
While leading digital transformation efforts, leaders have to be willing to take risks. By leveraging data and taking calculated risks, leaders can be on the cutting edge of the latest innovations and developments in their industry.
Data Privacy and Cybersecurity Awareness
Data is the foundation of most business transactions and decisions today, highlighting the critical importance of data privacy knowledge and cybersecurity awareness among leaders.
Protecting Data and Ensuring Compliance
The best way for leaders to protect the precious data that drives their decisions is to remain aware of data privacy regulations and take action to ensure that the team remains in compliance with those regulations.
Educating Teams on Cybersecurity Best Practices
Aside from remaining aware of data privacy regulations, leaders also have to encourage their team members to adopt the best cybersecurity practices. According to the U.S. Small Business Administration, the best practices for strengthening cybersecurity at an organization include:
- Staying aware of phishing scams and avoiding suspicious e-mails.
- Being careful and mindful about downloads.
- Enabling multifactor authentication throughout the organization.
- Investing in data protection for all sensitive and private information.
Building and Leading Remote Teams
Remote work became prevalent during the height of the COVID-19 pandemic and, at the time, was assumed to be a temporary measure. However, broader cultural shifts since the onset of the pandemic have led to the normalization of remote and hybrid job opportunities, making it vital for leaders of the future to learn the best remote workforce management practices.
Managing Distributed Workforces
Most leaders will be faced with the challenge of managing distributed workforces, in which some employees work in person and others work remotely or in hybrid positions. Setting clear expectations and establishing fair policies can help leaders effectively manage this dynamic situation.
Ensuring Team Well-Being in a Remote Work Environment
According to research published in the International Journal of Environmental Research and Public Health, the effectiveness of the remote work environment is heavily dependent on the managerial style, highlighting the key roles that leaders play in this evolving business landscape. While most employees report that remote work allows them to achieve a greater sense of work-life balance, leaders still have to make a conscious effort to check in with remote employees regularly and ensure they are happy with their current work circumstances.
Embracing the Future of Leadership
Constant change will continue to be the norm when it comes to leadership and digital transformation, meaning that aspiring leaders must be willing to embrace that uncertain (and exciting) future.
Lifelong Learning for Leaders in the Digital Era
Lifelong learning will be necessary for all learners in the digital era, particularly as advanced technology—including artificial intelligence, virtual reality, and machine learning technology—continues to revolutionize the business landscape. Advanced degrees, specialized certification programs, and skills-based training opportunities will be essential for all leaders, regardless of their industry or area of expertise.
Supporting Employee Development
In addition to prioritizing their own leadership development, leaders in the digital era should actively work to support employee development. Attracting and retaining top talent will continue to be crucial to organizational success, requiring leaders to invest in their employees and ensure that they proceed to develop leadership and technology skills.
Discover the Power of Innovation in Leadership at Indiana Wesleyan University
At Indiana Wesleyan University (IWU), we know that the future of digital leadership depends heavily upon developing adaptive, resilient, and aware leaders, which is why we have future-proofed our values-based business degree programs. At the IWU DeVoe Division of Business, we give students the opportunity to build a strong business foundation that is rooted in Christian values and, in turn, the ability to learn how to weave their faith into their leadership style.
Request more information about our extensive collection of degree programs and certificates today.
Sources
https://www.indwes.edu/academics/cas/school-of-professional-studies/division-of-business/
https://www.indwes.edu/find-your-program
https://www.ceo-review.com/five-forward-looking-skills-for-the-future-generation-of-leaders/
https://preparecenter.org/story/leaders-and-data-driven-decision-making-why-it-matters/
https://www.indeed.com/career-advice/career-development/managing-virtual-teams
https://www.sba.gov/business-guide/manage-your-business/strengthen-your-cybersecurity
